Baxter International Inc. · NYSE:BAX
Baxter International — 39th Annual J.P. Morgan Healthcare Conference (January 2021)
21 slides from Baxter International's conference presentation, Jan 11, 2021
Slide 1: 39th Annual J.P. Morgan Healthcare Conference
39th Annual J.P. Morgan Healthcare Conference José (Joe) E. Almeida, Chairman & Chief Executive Officer January 11, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements concerning Baxter’s preliminary financial results for fourth-quarter and full-year 2020, business development activities, capital structure, cost savings initiatives, and R&D pipeline, including results of clinical trials an
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures To supplement Baxter’s consolidated financial statements presented on a U.S. GAAP basis, the Company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United S
Slide 4: A Global, Diversified And Market-Leading Portfolio
A Global, Diversified And Market-Leading Portfolio Market Leadership Across Portfolio Renal Care Medication Delivery Pharmaceuticals Products In 100+ Countries 75M+ Patients Clinical Nutrition Advanced Surgery Acute Therapies Treated Annually 4
Slide 5: Rising To The Challenge Of COVID-19
Rising To The Challenge Of COVID-19 ► Maximizing production of medically necessary products and therapies, subject to capacity constraints ► Protecting employee health and safety ► Expediting shipments to global “hot spots” ► Donating $2M+ to global relief partners 5
Slide 6: 2020 COVID-19 Impact By Global Business Unit (GBU)
2020 COVID-19 Impact By Global Business Unit (GBU) • ~75% of U.S. Hospital Products business Net COVID-19 Revenue Impact Relative To Total GBU Revenue High linked to hospital admission rates ADVANCED ACUTE • Global declines in elective procedures SURGERY THERAPIES • Increased global demand for CRRT1
Slide 7: Top Quartile Goals / Our Strategy
Top Quartile Goals Patient safety and Quality Best place to work Growth through innovation Industry leading performance Our Strategy Strengthen our portfolio and extend our impact through transformative innovation that spans prevention to recovery 7
Slide 8: Baxter Transformation Journey Pillars
Baxter Transformation Journey Pillars Culture & Innovation Strategic Capital Financial Talent Ecosystem Deployment Strength 8
Slide 9: Culture & Talent
Culture & Talent Cultivating A Best Place To Work Through Global Initiatives Business Resource Groups Insights & Updates Continuous Feedback Manager Effectiveness Ethics & Compliance Meeting Efficiency Net Promoter Score Advance Racial Justice 9
Slide 10: A Recognized Top Employer And Outstanding Corporate Citizen
Culture & Talent A Recognized Top Employer And Outstanding Corporate Citizen Serving Our Recent Highlights Communities Worldwide Top 4% Top 10% On DJSI’s Healthcare Disability Equality & Reducing Our Equipment and Diversity Best Practices Environmental Supplies Industry Sector Inclusion Indices Foot
Slide 11: Innovation Ecosystem
Innovation Ecosystem Laying The Foundation Of A Leading Edge, Customer-Driven Organization Research & • Realigned R&D organization to cultivate diversity Development of research talent and expertise within each GBU • Adopted Stanford Biodesign process, a needs led innovation method Digital • Employi
Slide 12: Momentum In PD Therapies Supported By Current Market Dynamics
Innovation Ecosystem Momentum In PD Therapies Supported By Current Market Dynamics Chronic Renal Care Market Dynamics Global Initiative • % of adults with some form 1 in 10 Globally • In H1 2020, the U.S. rate of COVID-19 of chronic kidney disease hospitalizations was 3-4 times higher for ICHD (CKD)
Slide 13: Unlocking Market Opportunity Through Expanded Pump Offering
Innovation Ecosystem Unlocking Market Opportunity Through Expanded Pump Offering Goal of being a global leader in the ~$7B+ Infusion Systems category1 CANADA EUROPE Spectrum IQ Evo IQ Novum IQ – Approved Q4 ’20 Novum IQ – CE Marked Q4 ’20 Evo IQ Novum IQ Seamless drug library software and co
Slide 14: New Product Launches Meeting The Needs Of Patients And Providers
Innovation Ecosystem New Product Launches Meeting The Needs Of Patients And Providers Premix Injectables Clinimix HP Seprafilm Prismax 2 Ready-to-use New formulations Continue execution Single platform with portfolio expansion offer the highest of Seprafilm ability to deliver with added capacity pro
Slide 15: Strategic Capital Deployment
Strategic Capital Deployment Creating Additional Value For Shareholders REINVEST IN SHARE BUSINESS DIVIDENDS REPURCHASE M&A Investing in meaningful Currently targeting ~35% Selective share Executing strategic innovation and growth dividend payout ratio of repurchases to return acquisitions and accel
Slide 16: Financial Strength
Financial Strength Pursuing Further Opportunities For Operational Efficiency Strategic Growth Operations Optimization Allocating resources to support effective R&D Simplifying manufacturing network and commercial execution in higher margin, and assessing opportunities faster growing business lines w
Slide 17: Preliminary 2020 Financial Information
Preliminary 2020 Financial Information1,2 Total Baxter Fourth-Quarter 2020 Revenue Full-Year 2020 Revenue $3.18B $11.67B Reported Constant Operational Reported Constant Operational +5% +3% +2% +3% +3% +2% 1Financials referenced in this slide are preliminary and subject to change. 2Non-GAAP financial
Slide 18: Continuing Momentum In 2021 And Beyond
Continuing Momentum In 2021 And Beyond • Playing an ongoing role in pandemic response efforts • Executing on new product launches, market development and geographic expansions • Continued evaluation of strategic acquisition opportunities to unlock additional value • Committed to delivering enhanced
Slide 19: Appendix
Appendix 39th Annual J.P. Morgan Healthcare Conference January 11, 2021 19
Slide 20: Preliminary 2020 Financial Information: Sales by Global Business Unit
Preliminary 2020 Financial Information1,2 Sales by Global Business Unit Fourth-Quarter 2020 Revenue Full-Year 2020 Revenue $ In Millions Total Reported Constant Total Reported Constant Renal Care $1,013 +6% +4% $3,757 +3% +4% Medication Delivery $753 (3%) (3%) $2,735 (2%) (2%) Pharmaceuticals $571 (
Slide 21: Preliminary 2020 Financial Information: Sales by Operating Segment
Preliminary 2020 Financial Information1,2 Sales by Operating Segment Fourth-Quarter 2020 Revenue Full-Year 2020 Revenue $ In Millions Total Reported Constant Total Reported Constant Americas $1,614 (1%) +0% $6,069 (0%) +1% EMEA $867 +10% +5% $3,129 +5% +5% APAC $700 +13% +8% $2,475 +8% +7% Total Bax
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